Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

.11 Sprint 4:56 PM 99% leusercontent.com mail-attachment.goog D. $17,000 14. If

ID: 2597957 • Letter: #

Question

.11 Sprint 4:56 PM 99% leusercontent.com mail-attachment.goog D. $17,000 14. If a company's gross salaries and wages are $12,000, and it withholds S1,800 for income taxes and S800 for FICA taxes, the journal entry to record the employees' pay should include a: A. debit to Salaries and Wages Expense for $ B. debit to Salaries and Wages Payable for $9,400 C. credit to Salaries and Wages Payable for $12,000. D. credit to Salaries and Wages Payable for $9,400. 9.400 15. Ace Electronics had cost of goods sold of $20,000. If were S23,000 and ending inventory was S6,000, Ace's beginning inventory must have been: A. $3,000 B. S9,000 C. $26,000 D. $17,000 16. Roberto Corporation was organized on January 1, 2017. The firm was authorized to issue 100,000 shares of S5 par value common stock. During 2017, Roberto had the following transactions relating to stockholders' equity Issued 10,000 shares of common stock at $7 per share. Issued 20,000 shares of common stock at $8 per share. Reported a net income of S100,000. Paid dividends of S50,000 Purchased 3,000 shares of treasury stock at S10 (part of the 20,000 shares issued at S8). What is total stockholders' equity at the end of 2017? A. $270,000. B. S300,000 C. $250,000 D. $200,000 17. Mary's Music Store reported net income of $135,000. Beginning balances in Accounts Receivable and Accounts Payable were $29,000 and $26,000, respectively. Ending balances in these accounts were $30,000 and $24,000, respectively. Assuming that all relevant information has been presented, Mary's cash flows from operating activities would be: A. $132,000. B. S134,000 C. S136,000 D. $138,000.

Explanation / Answer

The Answer to this problem should be D.

The Correct Entry to be Passed while Recording Payroll Liability is:

                Gross Wages Dr. XXXX

                                To FICA Taxes Payable (Employee’s Share) XXX

                                To Federal Income Tax Payable XXX

                                To State Income Tax Payable XXX

                                To Wages Payable XXXX    

Accordingly, the Entry that should be Passed in this case should be:

Gross Wages Dr. $12,000

To FICA Taxes Payable $800

To Income Tax Payable $1,800

To Salaries and Wages Payable $9,400  

Reason: